I have a constant struggle with a company not paying me for 6 months. I translated about 30,000 words. She keeps on promising me that I will get paid. I never charged any company a late payment fee before. I think I am pretty patient regarding this issue. I can live with 30 day over due payments (~60 days after the invoice). But should I think about including a condition for late payments in my invoice? Do you have a working system? What is the resonable rate for late payments (1%??)? I love these translation agencies that pay on time! But once in a while, some agencies just forget to pay. Don't our credits go bad if we miss our payments?? I feel like living at the bottom of the food chain when these issues come up.

Subject:

Comment:

The contents of this post will automatically be included in the ticket generated. Please add any additional comments or explanation (optional)

I think a late payment fee wouldn't work with non-payers, but it might help with those agencies that regularly pay late.

Anyway, 1% is way too little, at least for a yearly fee.

In Finland the late payment fee is generally around 10% per year (for phone bill, insurance etc., I don't know about translation, though). So if you have a bill of USD 100 that is one month late, you will have to pay 0.83 cents extra. If the payment is 6 months late, the fee will be 5 dollars.

Subject:

Comment:

The contents of this post will automatically be included in the ticket generated. Please add any additional comments or explanation (optional)

Thanks, Astrid. This may work well for companies that are bound to pay slow. I may try this sometime. There is one company that pays always but is late always. I have given up getting paid early by this company, but I will try to give them a discount if payment is made on time. But I wish they could pay us on time as they want the projects to be done on time.

Subject:

Comment:

The contents of this post will automatically be included in the ticket generated. Please add any additional comments or explanation (optional)

Debi VaughtLocal time: 09:03 Swedish to English + ...

Discount, yes - but...

Sep 2, 2006

The discount is given on the *next* invoice with that client.

I had payment issues with several clients when I first started my business. But I tried a different approach.

Repeat, big-money clients love getting 5% off. Payment within 10 days is suddenly not a problem. Always before it was "we do invoices once a month and if our accountant is out of the office that day, everything rolls to the following month" - a real response from one company!

I put a discount on the third invoice that month because the second one just happened to fall within 3 days of their payment date - and marked it as "discount for prompt payment of invoice XXXX". From that date onward, I was paid the same week they got the invoice (except Fridays) and by passing on that information to other clients I was able to build a bit, as well.

This method will not work with everybody. But it works great for my larger clients and even with some of my smallest.

callie

Subject:

Comment:

The contents of this post will automatically be included in the ticket generated. Please add any additional comments or explanation (optional)

Don't know how working it eventually is (as I haven't had serious late payment issues while using it), but I have started to include a clause in my invoices (for more or less "irregular" clients, not those who I know will pay like clockwork) a while ago:

"Payment Terms: max. 30 days from the date of invoice.
Bank of England base rate + 8% interest is automatically due thereafter."

I think prevention is better than cure.

As for giving discount for prompt payment, I don't really like the idea, as it would seem to give the idea that prompt payment is not the expected, normal thing to do... (And I for one wouldn't like to send that kind of message around.)

[Edited at 2006-09-18 20:55]

Subject:

Comment:

The contents of this post will automatically be included in the ticket generated. Please add any additional comments or explanation (optional)

To report site rules violations or get help, contact a site moderator:

Translation Office 3000 is an advanced accounting tool for freelance translators and small agencies. TO3000 easily and seamlessly integrates with the business life of professional freelance translators.